Anytime us Commercial brokers start seeing insurance companies press for new business on a paticular class of business it's a sign! This is the next BIG market to pursue. The emerging market of Technology in Southern Califonia has carriers designing and building strong market strategies and insurance programs to entice brokers. It's never easy to simply pivot from one market into another and sometimes the insurance carriers get it wrong.
For example, back in 2008 Solar Contracting was the next big wave, but with the sluggish economy and federal/state regulations held back this business from going bonaza. Yes! Solar Contracting is making a climb back, but no where near the projections.
So what makes Technology so special? How is this BIG opportunity different from the other big waves that brokers have enjoyed? The answers is as new as the emerging market itself. Who had ever heard of Cyber liability? Data breach coverage? Or even cared to discuss this 5 years ago? The same could be said about snapchat and whats app? These new markets are creating their own niche and the insurance companies are recognizing it.
They've geared up and have sought after Tech specialist to be their insurance experts to assist brokers in the underwriting process. By doing this they can offer a true expertise of the Technolgy space and can price the premiums competively.
Initially, I was suspicisious of the insurance companies intentions to market Tech Start ups. Why are they so aggressive? It seems as though this time, they have it right. Tech Start ups have created a buzz loud enough for Insurance companies to build a whole division dedicated to Tech. Why not? Tech Start-ups in Los Angeles are so much fun to work on....this could be a fun time for generating new business, having fun, and learning something new everyday!
If you any have questions on how Directors and Officers Insurance works or Technology errors and omissions insurance, reach me on twitter or linkedin.
